Keith Bailey Realtor Florida Real Estate Blog

  The Perks of Buying over Renting Thinking about buying a home? While today’s  mortgage rates  might seem a bit intimidating, here are two solid reasons why, if you’re ready and able, it could still be a smart move to get  your own place . 1. Home Values Typically Go Up Over Time There’s been some confusion over the past year or so about which way  home prices  are headed. Make no mistake, nationally they’re still going up. In fact, over the long-term,  home prices  almost always go up ( see graph below ): Using  data  from the  Federal Reserve  (the Fed), you can see the overall trend is home prices have climbed steadily for the past 60 years. There was an exception during the 2008 housing crash when prices didn’t follow the normal pattern, but generally, home values kept rising. This is a big reason why  buying a home  can be better than  renting . As prices go up and you pay down your mortgage, you build...

  What To Know About Credit Scores Before Buying a Home If you want to  buy a home , you should know your credit score is a critical piece of the puzzle when it comes to  qualifying for a mortgage . Lenders review your credit to see if you typically make payments on time, pay back debts, and more. Your credit score can also help determine your mortgage rate. An article from  US Bank   explains : “A credit score isn’t the only deciding factor on your mortgage application, but it’s a significant one. So, when you’re house shopping,  it’s important to know where your credit stands and how to use it to get the best mortgage rate possible .” That means your credit score may feel even more important to your  homebuying plans  right now since  mortgage rates  are a key factor in  affordability . According to the  Federal Reserve Bank of New York , the median credit score in the U.S. for those taking out a mortgage is  770 . But t...

  Why Pre-Approval Is Even More Important This Year On the road to becoming a  homeowner ? If so, you may have heard the  term  pre-approval get tossed around. Let’s break down what it is and why it’s important if you’re looking to  buy a home  in 2024. What Pre-Approval Is As part of the  homebuying process , your lender will look at your finances to figure out what they’re willing to loan you. According to  Investopedia , this includes things like your W-2, tax returns,  credit score , bank statements, and more. From there, they’ll give you a pre-approval letter to help you understand how much money you can borrow.  Freddie Mac   explains  it like this: “ A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home . . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer.  Ultimately, you should only borrow a...

  For Buyers First Time Home Buyers Move-Up Buyers Buying Myths If you want to  buy a home , it's important to know how  mortgage rates  impact what you can afford and how much you’ll pay each month. Fortunately, rates for 30-year fixed mortgages have come down significantly since the end of October and are currently under  7% , according to  Freddie Mac  ( see graph below ):   This recent trend is great news for  buyers . As a recent article from  Bankrate   says : “The rate cool-off somewhat eases the housing affordability squeeze.” And  according  to Edward Seiler, AVP of Housing Economics and Executive Director of the Research Institute for Housing America at the  Mortgage Bankers Association  (MBA): “MBA expects that affordability conditions will continue to improve as mortgage rates decline . . .” Here’s a bit more context on how this could help with your plans to  buy a home . How Mortgage Rates Affec...